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SnapLogic said on Monday it raised $165 million in its latest round of funding to expand its AI-based integration platform as a service.
The data integration vendor said the funding round, led by Sixth Street Growth, brings its valuation to $1 billion.
SnapLogic's funding and the automation market
The iPaaS and enterprise process automation markets have recently seen some consolidation with a series of acquisitions and growth amid the rise of software geared toward the "citizen data scientist," or non-technical business user.
"One driver is the growing maturity of citizen integration has made iPaaS accessible to non-IT personas," said David Mooter, an analyst at Forrester.
Also, lockdown orders during the coronavirus pandemic forced enterprises to automate faster, and one option that enabled them to automate business processes more easily is iPaaS technology.
"But automation requires tools beyond iPaaS such as RPA [robotic process automation] and low-code development platforms for citizen-built user experiences," Mooter added.
He said that he expects that SnapLogic will use this funding to improve its existing capabilities for citizen integration and expand into new capabilities to support the automation process.
SnapLogic CEO Gaurav Dhillon said the vendor plans to scale and expand its integration platform and grow its use of artificial intelligence in its process automation technology.
"Artificial intelligence lets you connect better," Dhillon said, adding that AI can detect patterns that help in connecting applications or rebuilding a cloud data warehouse.
David Mooter Analyst, Forrester
Dhillon also said SnapLogic is looking to use the funding to acquire other companies, although he didn't specify which ones the vendor is considering.
"We're looking for very capable companies that believe in the same way we do," he said.
Investment into international expansion
Areas that SnapLogic may try to expand are internationally and in enterprise automation, said Keith Guttridge, an analyst at Gartner.
Investing in its enterprise automation messaging could help with brand awareness, Guttridge said.
"If they can invest in that area and succeed and go to market there, I think there's opportunities," said Guttridge.
The funding round emphasizes the intense activity in the automation and data integration markets, he said.
"Over the last several years, both iPaaS and RPA … have been sort of tying with each other in sort of high double-digit growth," Guttridge said. "If investment continues the way it's been growing, we certainly expect 2022 to be a strong year for anyone in the automation and integration space."